GST UPDATE

 Desk of CA. Praveen Sharma – 757 Series (CAPS) 

MADRAS HIGH COURT IN THE CASE OF Fashion Falls Fabrics

High Court Judgment on GST DRC-07 (W.P. against ex parte assessment order)

Case: Writ Petition challenging DRC-07 order dated 17.02.2025

Assessment Year: 2020–21

Grounds: Ex parte order passed without proper communication and opportunity

Key Highlights:

?Petitioner’s Stand:

?Unaware of proceedings due to limited portal access knowledge.

?Consultant failed to track notices/reminders uploaded on portal.

?Willing to deposit 10% of disputed tax and seek fresh hearing.

Respondent’s Position:

?Notices and reminders (including personal hearing opportunities) were issued via GST portal under DRC-01 and “Additional Notices and Orders.”

?No response from petitioner.

Court's Observation:

?Though portal upload is valid service under Section 169, it is not effective if there is no response.

?Officers must explore alternative service modes (e.g. RPAD) when no reply is received.

?Uploading only on portal without follow-up via other modes amounts to empty formality and leads to unnecessary litigation.

Final Directions:

?Impugned DRC-07 order set aside, subject to:

?Petitioner depositing 10% of disputed tax within 4 weeks.

On compliance:

?Case remanded for fresh adjudication.

?Petitioner to file reply with documents within 2 weeks.

?Respondent to issue 14-day personal hearing notice and pass a speaking order.

Outcome:

?Writ Petition allowed with directions.

?No costs awarded.

Takeaway:

???? GST officers must ensure effective service of notices by using alternate modes under Section 169, not just portal uploads, to avoid ex parte orders and unnecessary litigation.

Link:https://www.linkedin.com/pulse/desk-ca-praveen-sharma-757-series-caps-madras-high-mutjc

Regards

CAPS